As the global electric vehicle revolution accelerates towards a projected 22 million units in 2025, India is carving out a distinct and dynamic path. Unlike markets driven primarily by environmental policy, India’s EV surge is fueled by compelling economic logic, with electric two-wheelers leading the charge due to dramatic savings on fuel and maintenance. However, navigating this high-growth yet complex landscape—where market forecasts vary wildly and scaling challenges abound—requires more than just ambition; it demands strategic precision and execution excellence.
In a recent interview, Rashmi Verma spoke with Mr. Mukul Goyal, Co-Founder of Stratefix Consulting, to dissect the realities of India’s EV ecosystem. Moving beyond theoretical projections, the conversation provides a ground-level view of the sector’s evolution. They explore how businesses can prepare for a future marked by both immense opportunity and significant hurdles, from fragile supply chains and charging infrastructure gaps to the critical need for localized battery technology.
Mr. Goyal outlines how government incentives like FAME-II and PLI schemes have laid the foundation, but argues that the next phase of growth will be driven by market forces and innovative business models. Crucially, he explains Stratefix’s hands-on, execution-focused approach to consulting, which helps EV players tackle high costs, build consumer acceptance, and ensure regulatory compliance—not just with strategies, but with embedded implementation for sustainable, long-term growth. This interview is an essential read for anyone invested in understanding the pragmatic business dynamics shaping India’s electric mobility future.
Global EV sales are expected to cross 20 million units in 2025, making up about one-fourth of all new cars. What does this global shift mean for the future of the EV business?
The 20 million unit milestone represents more than a market shift; it’s a fundamental business transformation. BloombergNEF confirms we’re hitting nearly 22 million units globally in 2025, with EVs capturing 25% market share. This isn’t gradual adoption anymore; it’s mainstream acceptance. China dominates with 60% of sales, but the real story is emerging markets like India showing 36% growth. For businesses, this signals three imperatives: first, supply chains must pivot from ICE-centric to battery-centric models; second, service ecosystems need complete reimagining from maintenance intervals to skill requirements; and third, data becomes the new differentiator through connected vehicle platforms. The businesses thriving in 2030 won’t be those selling electric versions of petrol cars, but those who’ve redesigned entire value propositions around electric mobility’s unique advantages, instant torque, over-the-air updates, and grid integration capabilities.
Different reports estimate India’s EV market anywhere between USD 8 billion and USD 54 billion in size by mid-decade. How should businesses prepare when market forecasts vary so widely
When forecasts range from $8 billion to $54 billion, it reveals market immaturity, not uncertainty. Spherical Insights projects $310 billion by 2035, that’s 39% CAGR. The variance stems from different methodologies measuring different segments. Smart businesses hedge through portfolio approaches: invest in high-certainty segments like two-wheelers (currently 5% penetration with clear growth trajectory), whilst piloting in emerging areas like commercial fleets. Build scalable platforms rather than fixed infrastructure, modular charging systems, flexible manufacturing lines, and adaptable software architectures. The key is creating optionality. When Ola Electric built its Future Factory with 10 million unit capacity, they weren’t betting on specific demand numbers; they were creating the capability to capture multiple scenarios. Businesses should focus on building capabilities that perform across forecast ranges rather than optimising for single-point predictions.
How do you see the current business landscape of the EV sector in India evolving, and what are the major drivers of this growth?
India’s EV story is fundamentally different from China or Europe; it’s rooted in practical economics rather than environmental ideology. Two-wheelers lead because they solve real problems: fuel costs averaging ₹100 per litre make electric compelling with 80% lower running costs. Government policy provides the foundation, FAME-II has supported 16.15 lakh vehicles, whilst PLI schemes target ₹25,938 crore in manufacturing incentives. But the real drivers are commercial: delivery fleets achieving 40% cost savings, ride-sharing operators reducing operational expenses, and urban commuters avoiding pollution charges. The landscape is shifting from subsidy-dependent to market-driven growth. Gujarat’s EV policy offering land at ₹1 per square meter, combined with Maharashtra’s charging infrastructure push, creates competitive manufacturing hubs. We’re seeing localisation accelerate, and battery costs dropped 20% in 2024, making EVs competitive with ICE vehicles in total cost of ownership terms. The next phase will be driven by product innovation rather than policy support.
What are the biggest challenges EV companies face in scaling their operations, especially in areas like supply chain, charging infrastructure, and battery technology?
The trinity of scaling challenges, supply chain fragility, charging anxiety, and battery technology gaps requires systemic solutions. Currently, India imports 80% of lithium-ion cells despite domestic assembly capabilities. This creates vulnerability: Red Sea disruptions in 2024 delayed deliveries by 3-4 weeks. Charging infrastructure faces the “chicken-and-egg” dilemma, 7,432 stations sanctioned under FAME-II against 22,000 approved, showing execution gaps. Grid capacity limitations force 90% of charging operators to seek battery-buffered solutions, increasing costs by 15-20%. Battery technology remains the bottleneck. While energy density improved 5% annually, fast-charging capabilities lag; most Indian EVs require 3-4 hours for an 80% charge versus Tesla’s 30-minute Supercharging. Thermal management in Indian conditions adds complexity, with battery degradation 20% higher than in temperate climates. Solutions require collaborative ecosystems: battery swapping standards, grid-integrated charging, and localised cell manufacturing. Companies like Tata Chemicals investing in lithium extraction from Gujarat’s sources signal upstream integration becoming critical for sustainable scaling.
How are government policies and incentives shaping the EV ecosystem, and what changes would further accelerate adoption?
FAME-II has been the catalyst, but its impact varies dramatically. Two-wheeler adoption accelerated because incentives aligned with user economics, ₹15,000 per kWh, making purchase decisions viable. However, four-wheeler uptake disappointed because incentives couldn’t bridge the ₹8-10 lakh price premium over ICE equivalents. The recent PM E-DRIVE allocation of ₹2,000 crore for charging infrastructure addresses supply-side constraints. PLI schemes targeting ACC battery manufacturing could reduce cell costs by 30% through scale and localisation. State policies add complexity, while Delhi offers road tax exemption, Karnataka provides additional ₹25,000 subsidies, creating patchwork incentives. Future acceleration requires three policy shifts: standardised charging protocols eliminating proprietary lock-ins, battery passport systems enabling secondary markets, and carbon pricing making ICE vehicles bear environmental costs. The European Union’s approach of mandating 55 CO2 gram of CO2 by 2030 forces manufacturer behaviour better than purchase subsidies. India needs similar regulatory certainty extending beyond 2030 to justify long-term investments in EV-specific infrastructure.
How are you, as a consulting firm, helping EV players navigate challenges like high costs, consumer acceptance, and regulatory compliance to achieve sustainable growth?
Our execution-based methodology addresses the three-layer challenge EV companies face: technical complexity, market uncertainty, and operational scaling. Unlike traditional consultants offering strategy documents, we embed with clients to implement transformation. For cost challenges, we’ve helped battery manufacturers optimise cell chemistry, reducing material costs by 12% through AI-driven formulation. Our supply chain resilience frameworks enabled an automotive client to establish dual sourcing, reducing import dependency from 90% to 40% within 18 months. Consumer acceptance requires data-driven insights rather than assumptions. We deploy customer journey mapping, identifying that range anxiety affects only 23% of actual usage patterns, enabling focused infrastructure investment. Our behavioural analytics helped a charging operator increase utilisation from 15% to 45% by optimising location algorithms. Regulatory compliance becomes manageable through automated systems. We’ve implemented real-time monitoring, ensuring 99.7% FAME-II subsidy claim success rates versus the industry average of 78%. Our integrated approach combines technology deployment with capability building, ensuring sustainable growth beyond consulting engagement periods through embedded operational excellence frameworks.